Ann: Annual Report to shareholders, page-8

Dear Charlie,

Hypothetical scenario

1. If Noteholders do not allow for the extension beyond 31 Dec 2018. This will be a good outcome for SDL.

2. If the extension to 31 March 2019 is not granted by noteholders, the deal between ANS/WAPRC, SDL and noteholders would be cancelled accordingly and then,

3. With reference to the agreement between SDL and noteholders on 30 July 2018, Noteholders can convert the notes to equity and becoming main shareholders of SDL.

4. Since ANS has invested $1 million in SDL shares, they have no choice to buy more shares of SDL on market or from noteholders if they are still interested in the project.

5. For working capital, SDL can issue more shares to other sophisticated investors or to ANS.

6. If ANS/WAPRC wants to have significant equity ownership in SDL, they could buy the shares from noteholders at premium since SDL has become a debt free.

The China's NDRC approval for the WAPRC's outbound investment and Cameroon government approval on the Mbalam convention is the chicken or the egg causality dilemma. It is less likely that Cameroon Government will be happy for the WAPRC involvement in the project if China's NDRC does not approve it or vice versa. This chicken or egg dilemma will keep hanging in the sky without resolution.

Noteholders should be able to see the above problem and make the best decision to cancel the deal, and take over SDL as stated in the original agreement on 30 July 2018 so SDL trading can resume by removing all uncertainties which have been triggered by the take over deal between ANS/WAPRC, SDL and noteholders.

Good luck to all long-term suffering holders.